Just three weeks after a trade agreement between China and the United States was reached, the former has lashed out at the United States, accusing it of breaching their agreement and warning that it will take firm measures to protect her interests.
This latest dispute has dampened hopes for an immediate leadership call between U.S. President Donald Trump and Chinese President Xi Jinping, which Trump had proposed to advance bilateral negotiations.
In a statement released on the country’s X handle, China’s Ministry of Commerce rejected Trump’s assertion that Beijing violated the trade consensus reached in Geneva last month.
The ministry accused the U.S. of unilateral and discriminatory actions, including the introduction of new AI chip export restrictions, curbs on chip design software sales to Chinese firms and the revocation of visas for Chinese students.
U.S. Treasury Secretary Scott Bessent confirmed that trade negotiations with China had stalled, suggesting that a high-level call between Trump and Xi to break the deadlock may or may not happen.
At the meeting in Geneva last month, the U.S lowered tariffs imposed on goods from China from 145 to 30 per cent, with Beijing’s retaliatory tariffs lowered from 125 to 10 per cent. While the deal was to last for 90 days, allowing both parties reach a more substantial agreement, tensions have since been building up between both sides.
Expressing frustration over the U.S.’ actions, the ministry said if the U.S. insists on its own way and continues to damage their interests, they will continue to take resolute and forceful measures to safeguard its legitimate rights and interests.
Furthermore, China accused the U.S. of violating the consensus reached during Trump and Xi’s last conversation on January 17, although it did not provide specific details on the alleged breaches.
The ministry called for an immediate correction of these policies, urging US to work with China to immediately correct wrong practices.
Following the breakdown in talks, Asian stock markets experienced sharp declines, with Chinese stocks traded in Hong Kong falling by as much as 2.9 per cent, the steepest drop in nearly two months. U.S. stock-index futures also declined, signaling uncertainty among investors regarding the future of global trade relations.
Beyond trade disputes, geopolitical tensions between the nations continue to escalate. Over the weekend, China’s Foreign Ministry condemned remarks by U.S. Defense Secretary Pete Hegseth, who described China as an imminent threat to Taiwan, a self-governed island Beijing claims as its own.
Meanwhile, Trump has accused Beijing of violating the tariff truce, but refused to provide details. However, U.S. Trade Representative Jamieson Greer cited concerns that China had failed to accelerate exports of critical minerals essential for high-tech electronics.
President of the American Chamber of Commerce in China, Michael Hart, noted that China’s rare earth exports have been loosening their grip, yet at a pace that remains slow.
China’s Commerce Ministry firmly rejected the accusations from Washington, maintaining that Beijing has sincerely upheld the trade consensus and that any claims of misconduct were baseless and false.
